A $1.9bn-worth of new forest is being created on the West Coast of Queensland, where the state’s economic boom is at its peak, and it’s bringing new jobs.

But a report from the Australian Council of Agricultural Economics warns that the economic benefits of new land will come at a significant cost, especially to small communities.

In the West, the economic boom has been built on timber, mining and the energy industry, which provides around 30 per cent of the state economy.

But the Council of Agriculture Economics report says there is a big economic gap between what communities can expect to receive from a new forest and what will actually be created.

It said the land could become a “dead zone”, with many businesses not knowing what will be built on their land.

“If we are going to create jobs in Queensland, we are also going to need to protect that dead zone,” said the report’s executive director, Stephen O’Brien.

The council says the new forest will generate a minimum of $100 million in annual employment for Queensland.

“The forest is not the answer to everything,” Mr O’Brian said.

“But if we are to get a sense of what we need to create, the forest has to be an investment.

It is not just about money, it’s about creating jobs.”

The council’s chief executive, Chris McIlwain, said the government’s forest policy had to be flexible enough to meet the needs of communities.

“We need to think about what the long-term benefits are going a bit beyond just the immediate return to the economy,” he said.

The Queensland Forest and Resource Management Agency has announced the Forest Investment Scheme will be expanded to provide $1 billion for new forest in the state.

Mr O’Briens report says that new forest could provide around 1,200 jobs and create about 4,000 permanent jobs.

“It is a win-win for everyone, for Queensland, for the state of Queensland and for the environment,” he told ABC News Breakfast.

The Federal Government says it will spend $2 billion to buy forest and develop a national blueprint to manage forests.

“The Government will be putting forward a national forest plan, with a focus on new and existing forests in Queensland and across the country,” a spokesman said.

The State Government has also announced a $500 million funding injection for the West Australian forest industry, with an emphasis on developing the area’s timber industry.

“Our state government is investing $500m over five years to establish the new Western Australian Forestry Industry Development Fund to support a new timber sector that will create more than 600 jobs and support the local communities in the West,” the spokesman said in a statement.

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